Marsh McLennan Agency (MMA), a business of Marsh and a leading provider of business insurance, employee health and benefits, retirement and wealth, and private client insurance solutions across the US and Canada, has announced the acquisition of Arthur Hall Insurance, a full-service insurance agency based in West Chester, Pennsylvania. Terms of the acquisition were not disclosed. Founded in 1966, Arthur Hall provides commercial and personal lines expertise to clients across the country. Its specialties include the life sciences, information management, non-profit, craft beverage manufacturing, and municipal industries. All Arthur Hall employees, including President Jim Denham, will join MMA and continue to operate out of its two office locations in West Chester and Wilmington, Delaware. “Our clients are facing challenges on multiple fronts, and our value lies in the ability to foresee these dynamics and equip them for any scenario,” said Andrew Neary, CEO of MMA’s East region. “We look forward to bringing the Arthur Hall team’s business insurance expertise to our clients in the region, while simultaneously establishing a new presence for MMA in Delaware.” Mr. Denham added: "MMA has a unique power of perspective that is unmatched in the industry. In our ongoing pursuit of enhancing client outcomes, it became clear that joining MMA was our best path forward for our clients and colleagues, providing access to a wide range of risk mitigation strategies and a network of experts for clients and resources to enhance our colleagues’ careers.” About Marsh McLennan Agency Marsh McLennan Agency, a business of Marsh, is a leading provider of business insurance, employee health & benefits, retirement & wealth, and private client insurance solutions across the US and Canada. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, follow us on LinkedIn and X. About Marsh Marsh, a business of Marsh McLennan (NYSE: MMC), is the world’s top insurance broker and risk advisor. It is a global leader in risk, strategy, and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build confidence to thrive through the power of perspective. For more information, visit marshmclenan.com or follow us on LinkedIn and X. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com. 

Universal Insurance Holdings, Inc. has announced the successful conclusion of a state review of its claims data related to Hurricane Irma, which occurred in September 2017. The Company refuted all allegations of fraudulent submission, and the matter has been formally dismissed by the state. The Company successfully commuted its Hurricane Irma losses in 2023 with full transparency, and all parties were in complete agreement with the result. The Company is pleased that the state acknowledged its cooperation, noting that the Company “fully and completely cooperated” with the state and provided all requested information. Today’s resolution is within an accrued amount established by the Company more than two years ago. As a result, there is no current or future financial impact to the Company or its subsidiaries. The review arose when a former employee in the Company’s claims operation who left the company in mid-2018 and who had no involvement in or familiarity with the Company’s data analytics team or Florida Hurricane Catastrophe Fund (“Fund”) reporting procedures alleged that the Company improperly included certain non-Irma claims in preliminary reports submitted to the Fund. The assertions contain numerous fundamental factual inaccuracies and gross mischaracterizations. The Company’s estimated Hurricane Irma losses during the former employee’s tenure remained well below the Fund threshold. Further, the Fund has an extensive multi-year interim reporting process in which data is subject to review and examination. The Fund also has a thorough final analysis known as commutation in which the Fund and insurer evaluate loss data to determine a full and final settlement. This process, which is standard for all insurers, resulted in the parties’ mutual commutation agreement. The Company recognized throughout the review that the underlying assertions lacked merit and were frivolous. The Company monitors and tracks claims data on a daily basis. Over time, information about each claim evolves as the insurer gains information about the cause and origin of the loss. This inherently means that some claims initially identified as hurricane claims are later determined to not be associated with the hurricane, and conversely some claims intentionally or unintentionally not reported as hurricane claims are determined to be associated with a storm. The Company commenced a comprehensive review of its Hurricane Irma data prior to and during commutation. This extensive analysis resulted in the Company’s reassessment of approximately one percent of its Hurricane Irma claims. Today’s conclusion includes the state’s full and final dismissal of the former employee’s assertions. The Company has agreed to pay certain fees and costs associated with the review to avoid costs of litigation. Hurricane Irma was the single largest loss event in the Company’s history. Florida’s pre-reform laws and resulting abuses that generated an excessive litigation environment drove the storm’s costs from an initial estimate of $450 million to $2 billion. “We are pleased the review has come to a close and the state dismissed the case,” said Chief Executive Officer Stephen Donaghy. “We look forward to continuing to serve Floridians as market reforms are leading to more affordable home insurance options for consumers.” About Universal Universal Insurance Holdings, Inc. (NYSE: UVE) is a holding company providing property and casualty insurance and value-added insurance services. We develop, market, and write insurance products for consumers predominantly in the personal residential homeowners lines of business and perform substantially all other insurance-related services for our primary insurance entities, including risk management, claims management and distribution. We provide insurance products in the United States through both our appointed independent agents and our direct online distribution channels, primarily in Florida. Learn more at universalinsuranceholdings.com or get an insurance quote at Clovered.com. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A newly released report by Bain & Company, Bridging the Protection Gap: Affordability, Access, and Risk Prevention, outlines the evolving dynamics of the global insurance industry. Authored by Sean O'Neill, Andrew Schwedel, Daniel Jones, and Tanja Brettel, the report explores how insurers are navigating rising costs, shifting customer expectations, and emerging risks while positioning for future resilience.

Growth Pressures and Market Headwinds

Recent growth in the insurance sector — particularly in property and casualty (P&C) and life insurance — has largely stemmed from premium rate increases and favorable interest rates. However, Bain emphasizes that this momentum is unlikely to continue. Profitability in key areas such as personal auto and property lines has come under strain due to increasing claims costs and regulatory pricing constraints. At the same time, life insurance products are losing relevance, especially among younger consumers.

A significant concern is the widening protection gap: by 2030, only one-quarter to one-third of damages from natural disasters are expected to be insured. Life insurance coverage is projected to remain below 50% for mortality risks. Addressing these gaps will require solutions focused on both affordability and consumer engagement.

Six Strategic Themes for Insurers

The report identifies six core themes that insurers must address to overcome current challenges and deliver long-term value:

1. Responding to Shifting Customer Priorities

Affordability remains a major barrier in P&C insurance, particularly in regions affected by climate-related disasters. In many U.S. states, premiums have climbed sharply while regulatory restrictions prevent price adjustments that reflect rising risks. In life insurance, demographic trends and changing savings behavior are reshaping demand, requiring more flexible and portable products aligned with today’s workforce.

2. Tackling Emerging Risks Through Prevention and Innovation

The frequency and severity of natural disasters, cyberattacks, and new transportation technologies are reshaping risk models. Innovations like smart home systems, telematics, and wearable health tech offer insurers opportunities to reduce claims through prevention. However, public-private partnerships will be essential to manage systemic risks such as climate events and cyber threats.

3. Reimagining Customer Engagement

Digital channels and embedded insurance are changing how consumers research and purchase coverage. Insurers are experimenting with partnerships and social media strategies to reach target audiences, particularly younger consumers better. In life insurance, more effective targeting and streamlined customer journeys are critical to boosting engagement and conversion rates.

4. Leveraging AI and Unstructured Data

The insurance industry is undergoing a transformation driven by artificial intelligence and a surge in unstructured data—from call logs to dashcam videos. Bain anticipates significant gains in affordability, access, and operational efficiency through widespread AI adoption. However, realizing this potential requires rethinking traditional workflows and investing in new capabilities.

5. Preparing for the Retirement Cliff

An aging workforce threatens to disrupt key insurance functions such as underwriting and claims. The report stresses the importance of accelerated training, AI tools for productivity, and reskilling to offset looming retirements. Insurers must adapt job roles to reflect an increasingly data- and AI-driven environment.

6. Expanding Use of Alternative Capital

Alternative capital solutions—such as insurance-linked securities and collateralized reinsurance—are gaining traction as insurers seek to manage capital more efficiently. Bain notes that while regulators generally support these instruments, private capital alone may not be sufficient for addressing extreme events. Deeper collaboration with governments remains crucial.

Looking Ahead: A Call for Proactive Transformation

Bain concludes that insurers are at a strategic inflection point. The firms that modernize their products, adopt AI at scale, and retool their workforce will be better positioned for sustainable growth. These efforts, if successful, will not only improve insurer performance but also enhance societal resilience in the face of growing risk.

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Beginning April 3, new 25% tariffs on auto imports are expected to affect multiple layers of the automotive and insurance industries. While positioned as a move to bolster domestic manufacturing and generate an estimated $100 billion annually, the tariffs will likely introduce new cost pressures across the vehicle lifecycle — from imported parts and repair expenses to downstream impacts on claims and premiums.

The implications are particularly important for insurance professionals. With repair costs expected to rise due to the global nature of auto part sourcing, insurers may face an increase in claims severity that could ultimately lead to higher rates. Dealerships and repair shops are also anticipating operational challenges as they manage limited inventories and rising overhead.

What follows is an overview of how these tariffs may influence repair economics, dealership dynamics, and insurance pricing in the months and years ahead.

What the Tariffs Cover

The new tariffs primarily target imported vehicles and auto parts, including engines, transmissions, powertrain components, and electrical systems. With about 60% of auto replacement parts in the U.S. sourced from countries like Mexico, Canada, and China, many routine repairs could become more costly almost immediately. These tariffs will apply not only to new imports but also to the foreign-made components already embedded in the supply chain.

Impact on Vehicle Repairs

Because many U.S. vehicles—domestic and imported alike—rely on globally sourced parts, consumers will likely see rising repair bills. Industry experts note that the costs may hit sooner than expected, especially for parts already under price pressure due to limited availability. Small business owners in the repair sector are preparing to pass along these increases to customers, citing thin profit margins and limited alternatives.

For example, a Georgia-based repair shop owner reported an order for a vintage German part was canceled because of tariff concerns, leaving no domestic replacement options. With many foreign cars on the road, repair shops anticipate significant disruptions.

Dealership Challenges

Dealers, especially those focused on the economy or used vehicles, may also feel the strain. Not only could the cost of importing cars rise, but preparing used cars for resale — often involving foreign-made replacement parts — could also become more expensive. Some dealerships are exploring ways to stock up on parts in advance, though this presents risks if tariffs are later rolled back or modified.

Transparency and customer communication will become even more critical as prices adjust across the market. While some buyers may rush to secure vehicles before price hikes, longer-term pressures on inventory and margins remain.

Insurance Premiums in the Spotlight

The effect of tariffs isn’t limited to upfront car or repair costs. Insurance premiums are also expected to climb—but on a delayed timeline. Industry associations estimate that auto insurance claim costs could rise by $7 to $24 billion annually as repairs become more expensive. Although these increases might take a year or more to reach policyholders due to rate-filing procedures, the upward trend in premiums is already well underway.

Auto insurance premiums rose 14% and 12% in 2023 and 2024, respectively. Before these tariffs were introduced, another 7% increase was projected for 2025, and the actual rate may now be even higher.

A Cost Chain Reaction

While the administration projects the tariffs could generate $100 billion annually and incentivize domestic manufacturing, economists and industry experts caution that global supply chain disruptions will affect more than just new car prices. From repair bills to insurance premiums, the total cost of car ownership may rise in the coming months, regardless of where a vehicle was originally built.

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A recent testimony by the former CEO of a Texas-based health insurance provider has sparked widespread concern and prompted a state investigation into the company’s practices.

Surveillance Allegations Emerge in Legislative Hearing

Mark Sanders, former CEO of Superior HealthPlan in Austin, admitted during a Texas House committee hearing that the company had hired private investigators to collect background information on a wide range of individuals, including patients, healthcare providers, state lawmakers, and journalists.

The hearing, held by the Texas House Delivery of Government Efficiency Committee, focused on Medicaid procurement. During this session, Sanders revealed details of the company’s surveillance tactics, which reportedly began in 2017 when he assumed the CEO role.

Public Reaction and Immediate Consequences

The revelations quickly drew criticism from both lawmakers and the public. Texas Attorney General Ken Paxton announced that his office is investigating whether the surveillance efforts involved any illegal activities, including potential attempts to influence state contracts or avoid paying claims.

State Representative Giovani Capriglione questioned the justification behind surveilling individuals who were both customers and public officials. He expressed concern that taxpayer funds may have been used to finance the investigations.

In response to the controversy, Superior HealthPlan’s parent company, Centene, confirmed Sanders’ dismissal and emphasized that the actions described do not reflect the company's current values or leadership practices.

Legislative and Legal Implications

Lawmakers have begun drafting legislation to prevent future incidents of this nature. Capriglione stated that any company engaging in similar behavior would be disqualified from receiving future government contracts.

Another state representative, Tony Tinderholt, expressed alarm after reviewing alleged email correspondence detailing the surveillance activities. He called for accountability and supported the attorney general’s probe into the matter.

Company Acknowledges Policy Change

During his testimony, Sanders noted that the company had discontinued what he referred to as “routine” background checks on customers. He described the investigations as limited to publicly available information but acknowledged that the practice was ethically questionable.

While the full scope of the investigations and their impact remains to be determined, this incident has reignited discussions about privacy, ethics, and oversight in the health insurance industry.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com. Photo courtesy: News 4, San Antonio

From homeownership to auto insurance, consumers across the U.S. are feeling the sting of rising costs — and not just because of inflation. A growing number of experts point to another, lesser-known culprit: widespread abuse of the legal system. Fueled by aggressive attorney advertising, frivolous lawsuits, and secretive litigation funding, this trend is creating a ripple effect that reaches every household and business. The result? Higher insurance premiums, rising operational expenses, and a troubling hit to the economy.

The Real Cost of Legal System Abuse

According to the American Property Casualty Insurance Association (APCIA), the price tag of legal system abuse is staggering. In 2023 alone:

• Plaintiff lawyers spent $2.4 billion on over 26 million ads, many designed to provoke litigation.

• Litigation funding surged to $15.2 billion, often backed by private or foreign investors.

• Typical injury awards ballooned by 319%, driven by tactics that aim to sway juries emotionally.

• The economic impact of litigation abuse reached $443 billion—the equivalent of a $3,600-per-household “lawsuit tax.”

These rising costs don’t just hit courtrooms. Insurers — especially those offering umbrella and high-limit liability coverage—are seeing more large claims, forcing premiums to climb. And businesses, facing increasing liability exposure, are passing the added expense along to consumers.

The Threat of Third-Party Litigation Funding

One of the most troubling trends is the rise of third-party litigation funding (TPLF). Unlike traditional loans, these investments are not subject to usury laws, meaning funders can charge litigants interest rates that exceed 200%. These backers treat lawsuits like stocks—betting on someone else’s legal battle for profit.

What’s more, most states don’t require transparency about who is funding a lawsuit, leaving the door open for conflicts of interest—and even foreign influence — in the U.S. legal system.

Why Legal Reforms Are Essential

Without reform, this unchecked system continues to burden American households, stall economic growth, and challenge the integrity of our legal institutions. The APCIA and other experts advocate for:

• Disclosure requirements for litigation funding

• Limits on misleading legal advertising

• Caps on interest rates for third-party litigation loans

• Legal protections for businesses and insurers against abusive litigation practices

These measures aim to restore balance, transparency, and fairness to the civil justice system, ultimately reducing the pressure on insurance markets and consumer wallets.

What’s Next?

Legal reform isn’t just about curbing lawsuits—it’s about restoring trust, affordability, and sustainability across every sector touched by insurance. As lawmakers consider these complex issues, consumers and insurance professionals alike have a role to play in demanding greater accountability and transparency in our courts.

MORE ABOUT ROBERT P. HARTWIG:
Robert P. Hartwig is a Clinical Associate Professor of Risk Management, Insurance, and Finance at the Darla Moore School of Business at the University of South Carolina and Director of the school's Center for Risk and Uncertainty Management. He teaches courses in risk management, insurance, and corporate finance, mentors students, pursues a variety of research interests, and works with insurers, regulators, legislators, and many other insurance industry stakeholders, including media. Dr. Hartwig is also a member of the Federal Reserve Board's Insurance Policy Advisory Committee. Dr. Hartwig serves as a media spokesperson for the property/casualty insurance industry and is quoted frequently in leading publications such as The Wall Street Journal, The New York Times, USA Today, Washington Post, Los Angeles Times, Financial Times, BusinessWeek, Newsweek, U.S. News & World Report, CFO, Fortune, Forbes, The Economist and many others throughout the world. Dr. Hartwig also appears regularly on television, including programs on ABC, CBS, NBC, CNN, CNBC, Fox, PBS, Univision and the BBC. MORE ABOUT LYNNE MCCHRISTIAN:
Lynne McChristian joined the University of Illinois in January 2019. She is the director of the Office of Risk Management & Insurance Research at the University of Illinois in Urbana-Champaign, where she is also a senior instructor teaching insurance and enterprise risk management classes. She has previously held a similar teaching and research position at Florida State University. McChristian's corporate career includes more than 16 years with USAA, the highly regarded insurance and financial services company that primarily serves members of the U.S. military and their families. At USAA, she was responsible for internal and external communication, including crisis and strategic communication planning and media relations. McChristian has also consulted with the Insurance Information Institute and the American Property Casualty Insurance Association, both industry trade groups. She has been a featured columnist for an insurance industry publication and authored research papers on the lessons learned from Hurricane Andrew and on what renewed ties with Cuba could mean for insurance markets. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

W.R. Berkley Corporation (WRB) saw its stock surge to an all-time high following news that Japan’s Mitsui Sumitomo Insurance will acquire a 15% stake in the company. The move signals a significant vote of confidence in the U.S.-based insurer and strengthens ties between the two firms.

Mitsui Sumitomo plans to purchase the shares through open-market transactions or third-party deals without acquiring stock directly from W.R. Berkley or the Berkley family. The Berkley family, which holds around 16% of the company’s common stock, will retain its full position and continue to occupy two board seats.

Under the agreement, Mitsui Sumitomo will align its voting with the Berkley family once it reaches a 4.9% ownership threshold. At 12.5%, the family will support the nomination of a Mitsui representative to the board. The partnership is not expected to impact W.R. Berkley’s day-to-day operations.

The acquisition is projected to be completed by March 2026, pending regulatory approval. WRB stock rose 7.5% on the news and has gained nearly 22% year-to-date. The company now ranks seventh in the high-performing property and casualty insurance group tracked by Investor’s Business Daily.

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As vehicle leasing continues to grow in popularity across Louisiana, legal questions surrounding accident liability have become increasingly relevant for lessees and lessors alike.

Lease Terms Influence Responsibility

According to Louisiana law, liability for damages in accidents involving leased vehicles depends on several factors. These include the terms of the lease contract, the behavior of the involved parties, and relevant state statutes governing insurance and responsibility.

Lease agreements in Louisiana are legally binding documents that define the rights and obligations of the lessor and lessee. Typically, the lessee is responsible for daily operations and maintenance. However, liability in the event of a crash may involve additional considerations.

Attorney William P. Morrow of Morrow Law Firm in Opelousas noted, “Lease agreements often transfer certain obligations to the lessee, including maintaining insurance and adhering to operational guidelines.” He added that when accidents occur, particularly those involving injuries or property damage, liability questions are guided by both the lease terms and the conduct of the parties.

Liability and State Law

Under the Louisiana Civil Code, drivers who cause accidents through negligence or intentional actions are generally held responsible. Lessees operating the vehicle at the time of a crash are typically liable if fault is established. However, ownership liability may still arise in some circumstances—such as when the vehicle’s condition or maintenance plays a role in the incident.

State laws in Louisiana limit the scope of vicarious liability for vehicle owners who are not in control of the vehicle. Nonetheless, lease agreements may include clauses that shift or extend liability between the parties, including indemnification provisions.

Insurance Coverage Requirements

Insurance coverage is a critical component of most lease agreements. Lessees are often required to carry liability, collision, and comprehensive coverage. A failure to maintain these coverages can leave the lessee exposed to claims. Determining which insurance policy applies in multi-vehicle or injury accidents can sometimes delay claims resolution or litigation.

In the aftermath of an accident, both lessees and lessors may be included in lawsuits. Courts typically examine the specific circumstances, lease terms, and any applicable insurance coverage to determine liability.

Commercial Leases and Employer Liability

Commercial lease agreements for company vehicles introduce additional considerations. Employers may be held liable under legal doctrines such as “negligent entrustment” or “respondeat superior” if the leased vehicle is operated by an employee during work-related duties.

Additional Lease Provisions

Lease agreements may also include stipulations for accident reporting, repair responsibilities, and handling total loss claims. Some contain provisions on diminished value or wear and tear, which may impose additional costs after an accident, even when insurance applies.

Uninsured and underinsured motorist (UM/UIM) coverage may also play a role in these cases. If the at-fault driver lacks sufficient insurance, the availability of UM/UIM benefits will depend on the leased vehicle’s insurance policy and its specific terms.

Legal Guidance and Industry Relevance

William P. Morrow emphasized that lease agreements establish obligations that extend throughout the lease period, including during incidents on the road.

Morrow Law Firm, based in Opelousas, Louisiana, handles a variety of injury and liability cases across the state, including those involving motor vehicle accidents and lease-related insurance issues. As vehicle leasing becomes more common, related legal matters are increasingly appearing in litigation concerning injuries, property loss, and insurance disputes.

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The Commissioner of California, Ricardo Lara, announced last Friday his support for new legislation designed to safeguard homeowner privacy and improve transparency regarding how insurance companies use aerial imagery.

The proposed legislation, Assembly Bill 75 (AB 75), was introduced by Assemblymember Lisa Calderon. If passed, it would require insurance companies to notify homeowners at least 30 days before capturing or obtaining aerial images of their property. Additionally, the bill would give homeowners the right to request and receive copies of any aerial imagery used in insurance decisions.

“No homeowner should be unaware that their property is being photographed or have no way to access the images insurers use to make coverage decisions,” Commissioner Lara stated. “AB 75 will increase transparency, protect privacy, and give consumers a fair chance to dispute inaccurate or outdated images that could wrongly impact their insurance coverage.”

Recent reports and consumer feedback have raised concerns about the growing use of aerial imagery and artificial intelligence by insurers. According to the Wall Street Journal in a 2024 article, insurers are now photographing nearly every building in the U.S., often without the owner’s knowledge, and using this data in automated risk assessments. These AI-driven models can result in nonrenewals or cancellations of policies based on outdated or inaccurate imagery.

The California Department of Insurance has documented multiple instances in which such images led to incorrect evaluations of properties, including misidentified roof conditions that resulted in wrongful policy cancellations.

AB 75 seeks to address these concerns through the following provisions:

• Requiring insurance companies to provide a minimum 30-day notice before conducting aerial inspections;

• Allowing homeowners to obtain copies of aerial images used in underwriting or renewal decisions;

• Promoting greater transparency and accountability in how insurers assess property risk.

“This bill is about fairness,” Commissioner Lara added. “Homeowners deserve to know when their property is being photographed and have the ability to challenge inaccurate or misleading images that could unfairly cost them.”

The bill will move through the California legislative process in the coming months. If enacted, it would mark a significant step in protecting consumer rights in an increasingly digital insurance landscape.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Florida’s legislative reforms to address legal system abuse and claim fraud are stabilizing the state’s property/casualty insurance market, according to a new Issues Brief published by the Insurance Information Institute. Claims-related litigation has significantly declined in the Sunshine State over the past two years, and home insurance average premiums are nearly flat, with 40% of home insurers requesting rate decreases from the state’s insurance regulator in 2024. Eleven new property insurers have entered the market and six of the top 10 national insurers writing residential policies in Florida grew their market share in 2024, Triple-I’s Issues Brief noted. “While it took some time to get through the massive amounts of litigation fueled by billboard attorneys just before reform was passed, citizens of the Sunshine State are now clearly seeing the benefits of a more stable and affordable insurance marketplace,” said Triple-I CEO Sean Kevelighan. “With such visible progress being made it is important that the reforms remain, so Floridians no longer fall victim to the legal system abuse of the past such as assignment of benefits claim fraud schemes.”

Home Premium Rate Growth Slowing

The impact of the 2022 and 2023 reforms can be seen in premium rate changes, particularly with respect to property insurance. Homeowners rates in Florida grew at a much slower rate in 2024, even as rate growth continued to accelerate nationally. S&P Global Market Intelligence recently reported that Florida’s average rate filing of 1% in 2024 was the lowest in the U.S., with more than 30 states experiencing double-digit average rate increases last year.

Citizens Successfully Depopulating

After Citizens Property Insurance Corp., the state-backed insurer of last resort, reached a peak of 1.4 million policies in force (PIF) in September 2023, depopulation has reduced its PIF by nearly 40% to under 850,000 customers as of Feb. 28, 2025. The financial improvement of the private market has enabled Citizens to track toward a much more manageable level of risk, reducing the probability of a “hurricane tax” due to a shortfall to pay storm claims, according to Triple-I.

Improving Auto Market

Legislative reform is also having a significant impact on the state’s private passenger auto market. Several national auto writers plan to file for Florida rate decreases in 2025 due to a 500% year-over-year decline in auto glass claim lawsuits in 2024 after assignment of benefits for this generator of fraudulent claims was banned.

Staying the Course

As the Florida Legislature begins its 2025 session today, there is concern over bills filed in the state’s Senate and House that would allow one-way attorney fees to be awarded for certain types of claim litigation. This would be a reversal of previous reforms that eliminated these fees. “Despite continuing market and political pressures, Florida policyholders and taxpayers stand to benefit tremendously from the 2022 and 2023 legislation. Given the pain of recent years and the continuing perils in this catastrophe-prone state, it’s important for all stakeholders to support continued reform,” Triple-I’s Issues Brief concluded. About Insurance Information Institute (Triple-I) With more than 50 insurance company members — including regional, super-regional, national and global carriers — the Insurance Information Institute (Triple-I) is the #1 online source for insurance information in the U.S. The organization’s website, blog and social media channels offer a wealth of data-driven research studies, white papers, videos, articles, infographics, and other resources solely dedicated to explaining insurance and enhancing knowledge. Unlike other sources, Triple-I’s sole focus is creating and disseminating information to empower consumers. It neither lobbies nor sells insurance. Triple-I offers objective, fact-based information about insurance – information that is rooted in economic and actuarial soundness. Triple-I is affiliated with The Institutes. About the Institutes The Institutes are a global not-for-profit comprising diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting and preventing losses to create a more resilient world. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A bill that would end Florida’s no-fault auto insurance system and shift to a fault-based model advanced in the state House this week, drawing both support and criticism from stakeholders across the insurance, medical, and legal fields.

About the Bill

The proposed legislation, HB 1181, would eliminate the requirement for drivers to carry $10,000 in Personal Injury Protection (PIP) coverage. In its place, the bill raises the minimum required bodily injury liability coverage to $25,000 per person and $50,000 per incident. Advocates of the bill say it would create a more equitable system by allowing individuals injured in accidents caused by others to pursue compensation for noneconomic damages, such as pain and suffering—rights that are currently limited under the no-fault structure.

Rep. Daniel Alvarez, the bill's sponsor, argued that the reform would improve fairness in the system. “You can’t ask me to forgo your growing pains to continue to allow Floridians to be subject to the pain,” he said, acknowledging the expected adjustment period for medical professionals and insurers.

Support and Opposition

While the bill passed overwhelmingly in the House committee, it has sparked concern among insurance companies and healthcare providers. Critics caution that removing the PIP requirement could raise insurance premiums for drivers who currently carry only the minimum coverage. There are also concerns that higher costs may lead some drivers to drop insurance altogether, increasing the number of uninsured motorists and placing more strain on emergency healthcare services.

Tampa Bay attorney Joshua Lipton highlighted the bill's potential impact on motorcyclists, who cannot currently purchase PIP policies under Florida law. He noted that bikers often bear the burden of their own medical bills and wage losses in accidents involving insured drivers.

From the insurance industry perspective, some argue the system has already undergone recent reforms. State Farm lobbyist Mark Delegal pointed to 2022 legislative changes that streamlined litigation and removed one-way attorney fees, claiming these fixes have already started lowering rates. “State Farm has in the last six months lowered its automobile insurance rates by 8%. That’s a fact,” he said.

Uncertain Future in the Senate and Governor’s Office

The Senate companion bill, SB 1256, has been assigned to committees but has not yet been scheduled for a hearing. Meanwhile, the proposed repeal faces an uncertain fate with Governor Ron DeSantis. In 2021, he vetoed a similar repeal, citing potential unintended consequences and concerns over increased costs for consumers.

While the new bill does not include provisions like mandatory medical payments coverage (MedPay) that were part of the 2021 version, DeSantis recently signaled skepticism, suggesting the proposal is being driven by the legal industry. He stated that any reform must clearly demonstrate rate reductions to earn his support.

Sen. Erin Grall, who sponsored the Senate bill, remains optimistic. “A responsibility-based system to me is just consistent with many of the principles that [the governor] stands for,” she said, expressing hope for a productive dialogue during the legislative session.

Next Steps

HB 1181 is scheduled to move through the House Insurance and Banking Subcommittee and the House Judiciary Committee. Observers will be watching closely to see if the bill gathers momentum or faces another executive veto.

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After a period of uncertainty, Pie Insurance Group is once again on solid financial ground. AM Best has officially removed the "under review with negative implications" status and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for both The Pie Insurance Company and its affiliate, Pie Casualty Insurance Company. Together, these entities operate under the Pie Insurance Group umbrella.

Why the Ratings Were Under Review

In March 2024, AM Best placed Pie’s ratings under review due to significant underwriting losses from its New York book of business in 2023. The root cause was adverse reserve development, a situation where previously set reserves were found insufficient. This created a ripple of concern over the company’s financial stability.

However, by the third quarter of 2023, Pie Insurance had taken decisive action to stabilize its reserves and reduce risk exposure through a strategic commutation. This move allowed the company to reshape its balance sheet and set the stage for a stronger financial position going forward.

Capital Strength and Profitability on the Rise

Following its reassessment, AM Best determined that Pie’s risk-adjusted capitalization at year-end 2024, measured by the Best’s Capital Adequacy Ratio (BCAR), was at the strongest level—a status expected to hold steady over the next few years.

The group has also demonstrated solid liquidity and achieved profitability in fiscal-year 2024, a significant milestone for a company still navigating the complexities of its startup phase. AM Best noted these improvements in assigning a stable outlook to Pie’s credit ratings.

What Comes Next for Pie Insurance

While AM Best acknowledges the inherent execution risks faced by emerging insurers, the outlook for Pie Insurance Group is cautiously optimistic. With stronger capital reserves, stable liquidity, and a return to profitability, the company is well-positioned to meet its business plan targets.

Ongoing monitoring will ensure Pie continues to align with its stated goals, but for now, the affirmation of its credit ratings marks a positive step forward. This renewed confidence from AM Best reflects Pie’s commitment to financial health, strategic risk management, and long-term sustainability.

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